Islamic Institutions Pledge RM 2.67 Billion at WHBC 2023

In a landmark development for the global Halal sector, five prominent Islamic financial institutions have collectively pledged a remarkable RM 2.67 billion (£459 million) during the World Halal Business Conference (WHBC) 2023. This substantial financial commitment is poised to be a game-changer for Malaysia’s Halal industry, enhancing its global stature and driving innovation and economic growth within the sector.

A Significant Financial Commitment

The significant pledges made at WHBC 2023 reflect a robust commitment to advancing Malaysia’s position as a leading hub for Halal products and services. SME Bank Malaysia has taken the lead with a pledge of RM 1 billion (£170.5 million). This substantial contribution demonstrates SME Bank’s dedication to supporting the growth and development of Malaysia’s Halal ecosystem. The other major contributors include Standard Chartered Saadiq Islamic Bank, Bank Islam Malaysia Berhad, Alliance Islamic Bank Berhad, and Hong Leong Islamic Bank, which have collectively committed RM 1.67 billion (£284.8 million). This unprecedented financial backing signifies a major leap forward for the Malaysian Halal sector, positioning it for substantial growth and innovation.

Transformative Impact on the Halal Industry

The RM 2.67 billion pledged at WHBC 2023 will be strategically allocated to various critical areas within Malaysia’s Halal industry, each aimed at driving substantial advancements and fostering a more competitive and sustainable sector. The key areas of investment include:

1. Research and Development (R&D): A significant portion of the pledged funds will be directed toward advancing research and development in Halal products and services. This includes supporting the development of innovative technologies, new product lines, and advanced methodologies that adhere to the highest standards of Halal compliance. By investing in R&D, Malaysia aims to lead the way in creating cutting-edge Halal solutions that cater to a global market.
2. Infrastructure Development: The funds will be used to enhance infrastructure and facilities for small- and medium-sized enterprises (SMEs) operating within the Halal industry. Upgrading these facilities is essential for enabling SMEs to scale their operations, improve their production capabilities, and compete more effectively on an international level. Enhanced infrastructure will also facilitate smoother operations and better quality control in the production of Halal goods.
3. Export Expansion: Boosting the export of Malaysian Halal products and services is a key focus of the funding. The investment will support strategies to increase the global market reach of Malaysian Halal offerings, targeting new and emerging markets. This includes developing marketing strategies, enhancing distribution networks, and establishing partnerships with international stakeholders to promote Malaysian Halal products worldwide.
4. Support for Entrepreneurs: The pledged funds will also be utilized to empower entrepreneurs and startups within the Halal industry. This support will include providing mentorship, financial assistance, and guidance to new and emerging businesses. By fostering innovation and nurturing new talent, Malaysia aims to build a vibrant and dynamic Halal ecosystem that drives long-term growth and development.

A Collaborative Milestone

The collective commitment from these leading Islamic financial institutions represents a significant milestone in the development of Malaysia’s Halal industry. This collaboration underscores the importance of a unified approach to advancing the sector and highlights the role of strategic financial investments in achieving long-term goals. The combined efforts of SME Bank Malaysia, Standard Chartered Saadiq Islamic Bank, Bank Islam Malaysia Berhad, Alliance Islamic Bank Berhad, and Hong Leong Islamic Bank reflect a shared vision of fostering a thriving and sustainable Halal industry.

Insights from WHBC 2023

The WHBC 2023 has served as a crucial platform for discussing and advancing the Halal industry on a global scale. As a premier international conference, it brought together industry leaders, policymakers, and stakeholders from around the world to explore the latest trends, challenges, and opportunities in the Halal market. The conference featured a range of compelling presentations, panel discussions, and workshops that provided valuable insights into the future of the Halal sector.

The event highlighted Malaysia’s growing influence in the global Halal industry and showcased its commitment to innovation, sustainability, and inclusive growth. The substantial pledges made at the conference are a testament to Malaysia’s strategic vision for the future of its Halal sector and its determination to lead the way in Halal business.

Statements from Key Figures

During WHBC 2023, the Rt. Hon. Dato’ Seri Dr. Ahmad Zahid Hamidi, Deputy Prime Minister of Malaysia, emphasized the significance of the pledges made by the Islamic financial institutions. He stated, “This substantial commitment from leading financial institutions underscores our collective dedication to nurturing growth and innovation within our Halal ecosystem. The RM 2.67 billion funding portfolio establishes an enabling platform for sustainable development, job creation, and global competitiveness within the Halal sector. This marks a significant stride in our mission to position Malaysia at the forefront of the Global Halal Economy.”

Hairol Ariffein Sahari, Chief Executive Officer of Halal Development Corporation (HDC), Malaysia, also highlighted the importance of the pledges. “Building on the momentum generated at WHBC 2023, we are excited to announce that the next edition, WHBC 2024, will take place in one of the Organisation of Islamic Countries (OIC). The region has consistently demonstrated significant interest in the Halal market, making it an ideal location to continue building upon the important topics and issues discussed this year.”

With the substantial financial pledges made at WHBC 2023, Malaysia is well-positioned to make significant advancements in its Halal industry. The investments will drive innovation, enhance infrastructure, and expand global market reach, ensuring that Malaysia remains at the forefront of the global Halal economy. As Malaysia continues to develop its Halal sector, it is poised to become a leading global hub for Halal business, contributing to the nation’s economic growth and stability.

For more detailed information about WHBC 2023 and its program, please visit the official website: WHBC 2023 Programme. This event has underscored the importance of strategic financial commitments in shaping a sustainable and thriving future for the Halal industry.